Graph 14-5 The graph depicts the cost structure of a firm in a competitive market.Use the graph to answer the following question(s).
-Refer to Graph 14-5.Firms would be encouraged to enter this market for all prices that exceed:

Question

Graph 14-5  The graph depicts the cost structure of a firm in a competitive market.Use the graph to answer the following question(s).
-Refer to Graph 14-5.Firms would be encouraged to enter this market for all prices that exceed:

Quizplus · Accepted Answer

Firms are encouraged to enter a market when they can expect to make a profit, which occurs when the price is above the average total cost (ATC). Without seeing Graph 14-5, the general principle is that if multiple price levels are listed (P₃, P₄, etc.), and the question suggests firms would enter for all prices exceeding a certain point, it implies that above the highest mentioned ATC or similar benchmark, firms would find entry profitable. Thus, "all of the above" suggests that for prices above P₃, P₄, and any other listed, entry would be encouraged, assuming these points are associated with ATC or a similar measure of profitability threshold.

Graph 14-5 the Graph Depicts the Cost Structure of a Firm